I've never heard this before. That may be an option, but I don't believe it's a requirement to have the IRS do the calculation for us. What IS a requirement, and something we all should be doing, is making some kind of quarterly estimated payment for what we believe we might end up owing on our taxes at the end of the year. It might also be easier making four smaller payments rather than having to come up with a big payment when filing.
As someone else said, I believe there are certain income thresholds where we're required to pay at least a certain percentage of estimated tax due as we go (i.e. at least quarterly) or fines are applied. If we're going to be owing something when we do our return, it just makes good sense to send in some kind of estimated payment.
The forms are available online (http://www.irs.gov/pub/irs-pdf/f1040es.pdf) and include just about anything you'd want to know on the issue, including a form to use to calculate amount to pay. However, we don't have to include any documentation of how we come up with the amount being sent until we file our actual return. There also are due dates for each of those quarterly payments, so I suggest marking them on calendars in advance.
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| Messages in this Thread |
|  Taxes - feelings screwed this year - Jennifer Mumford on 2/20/21 9:42pm |
|  Re: Taxes - feelings screwed this year - Carolyn Bodley on 2/20/21 11:46pm |
|  No, in CA, we can charge per sig notarized, not per stamp. n/m - JanetK_CA on 2/20/21 11:53pm |
|  Re: No, in CA, we can charge per sig notarized, not per stamp. - Jennifer Mumford on 2/21/21 12:22am |
| Yes. You pay SE tax only on what remains after the notary -  MW/VA on 2/21/21 7:40am |
| Re: Schedule C - Carolyn Bodley on 2/21/21 8:23am |
| Re: Schedule C - Luckydog on 2/21/21 11:05am |
| Re: IRS.gov topic 36 Penalty for underpayment of estimated - Carolyn Bodley on 2/21/21 12:22pm |
|  Topic 306 - Linda_H/FL on 2/21/21 12:30pm |
|  Re: Topic 306 - Carolyn Bodley on 2/21/21 12:49pm |
|  Re: Topic 306 - Luckydog on 2/21/21 3:23pm |
|  Many businesses file quarterly returns along with - Linda_H/FL on 2/21/21 4:37pm |
| Re: CPA’s tax program and now TurboTax has always calculated - Carolyn Bodley on 2/21/21 12:52pm |
| The IRS can charge a penalty is you owe $1,000 or more. - MW/VA on 2/21/21 1:49pm |
 | Re: Topic 306 - JanetK_CA on 2/21/21 4:46pm |
| Re: Definitely easier to make 4 smaller quarterly payments - Carolyn Bodley on 2/21/21 4:56pm |
| Re: Topic 306 - Jennifer Mumford on 2/21/21 5:04pm |
| Re: Topic 306 - KimmyMD on 2/22/21 8:44am |
| Re: Topic 306 - Luckydog on 2/22/21 8:47am |
|  Re: have never been incorporated; operate as IC dba - Carolyn Bodley on 2/22/21 9:31am |
|  Re: have never been incorporated; operate as IC dba - Luckydog on 2/22/21 12:48pm |
| That has nothing to do with it. - JanetK_CA on 2/22/21 3:29pm |
| Re: That has nothing to do with it. - Luckydog on 2/22/21 6:58pm |
| Re: That has nothing to do with it. - Carolyn Bodley on 2/22/21 9:14pm |
| Re: Taxes - feelings screwed this year - ananotary on 2/21/21 8:53am |
| Re: Taxes - feelings screwed this year - Cheryl Elliott on 2/21/21 10:49am |
| Re: Taxes - feelings screwed this year - Jennifer Mumford on 2/21/21 11:10am |
| Don't feel too bad. Last year was really busy & I'm owing - MW/VA on 2/21/21 1:47pm |
| Re: Don - Luckydog on 2/21/21 8:17pm |
| Re: You don’t pay your CPA quarterly - you mail $ yourself - Carolyn Bodley on 2/21/21 9:33pm |
| Re: You don’t pay your CPA quarterly - you mail $ yourself - KimmyMD on 2/22/21 8:47am |
| Re: Taxes Direct pay - Clem/CA on 2/21/21 12:06pm |
| Re: Taxes Direct pay - Jennifer Mumford on 2/21/21 5:06pm |
| Re: Financial planners, SEPs, IRAs - Carolyn Bodley on 2/21/21 10:03pm |
| This ^^^^^^^^^^^^^^^ n/m - ananotary on 2/21/21 10:40pm |
| Re: This ^^^^^^^^^^^^^^^ - Luckydog on 2/22/21 8:49am |
| Re: Financial planners, SEPs, IRAs - JanetK_CA on 2/21/21 11:32pm |
| Re: Financial planners, SEPs, IRAs - Carolyn Bodley on 2/22/21 7:05am |
| Re: 1040-ES - Carolyn Bodley on 2/22/21 8:05am |
| Re: 1040-ES - JanetK_CA on 2/22/21 3:55pm |
| Re: must make profit 3 out of 5 years - Carolyn Bodley on 2/22/21 5:19pm |
| Re: must make profit 3 out of 5 years - VT_Syrup on 2/22/21 6:07pm |
| Re: must make profit 3 out of 5 years - Luckydog on 2/23/21 7:19am |
